“The negative trends taking place in Russia’s economy, with regard to development prospects, are only to the benefit of Armenia,” said economist Ashot Yeghiazaryan, in response to the question of Aravot.am that after Russia’s embargo to some European products, the exchange rate of the ruble again sharply declines, so what kind of negative impact it will have on our country’s economy. The economist believes that Armenia, of course, will have problems in shirt-term run, and a decline of economic growth will be observed, but in the long-term run, a number of key problems in energy, transportation, foreign markets, etc. will be resolved in our country.
Mr. Yeghiazaryan also believes that on the background of the processes taking place in Russia, again the signing of the EU Association Agreement become imperative. “It is a transitional phase, and Armenia should be able to cope with it, any transitional phase is painful, because ties with the partners is cut, and, naturally, the interruption of the ties with the partners will lead to deterioration of economic situation. An adverse effect will occur with regard to transfers and investments in foreign trade,” opines the economist. He does not rule out the possibility that the Russian ruble exchange rate is mostly due to the recent decline in oil prices, also the outflow foreign capital from Russia in the form of dollars.
Ashot Yeghiazaryan that it is wrong to consider that “it would be good for Armenia if it is good in Russia.” “Of course, it is true for a short-term run. Armenia would have serious problems: decline of revenues, and, in general, in terms of boosting the economic growth. I think it would be otherwise in a long-term run, the negative trends in the Russian economy and in general, Russia’s isolation from the global point of view, only this can have a positive effect on Armenia.”
According to the economist, it is more due to structural dependence on Russia: energy and transportation, which Armenian still is unable to overcome. “Russia, in fact, is having the role of a breaking factor. The dependence on Russia’s economy means also exclusion of technological progress. Russia, itself, does not possess the relevant technologies, in fact, Russia performs the role of a breaking obstacle for the access of technologies of the western countries to Armenia, de-escalation of dependence implies first of all reduction of Russia’s influence, which will lead to other investment sources, other technologies, other contacts, and other relationships. Potentially, we obtain a chance to be integrated to more advanced structures, accordingly, we obtain a bigger development perspective.” According to Mr. Yeghiazaryan, elimination of Western sanctions against Iran, opens up promising prospects for Iranian market, which is also to the benefit Armenia.
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